AGENTS AND AGENCY I2g The mere fact of delegation does not as a rule establish any relationship between the principal and the sub-agent. The sub-agent is responsible only to the agent who appointed him, and the principal is not liable for the acts of the sub- agent. This is so even where the agent has authority to delegate. Where, however, the principal has definitely accepted and agreed to the sub-agent who is appointed a relationship may spring up directly between the principal and the sub-agent (there is said to be privity of contract between them), and in such a case the original agent drops out and the sub-agent becomes in effect an agent. The agent is not allowed to use any information which he may obtain 'from one principal in carrying out his duties with another principal That is, any confidential information that is acquired whilst operating an agency for one person may not be used in connection with any agency with another. The use of experience and general information is not debarred, but only such information as, if used, might be detrimental to the principal from whom it was acquired. Under the Prevention of Corruption Act, 1906, an agent may not receive any secret commission, or payment from persons other than his principal. This is to prevent bribery and corruption as a means of securing or influencing busi- ness, and furthermore, should any agent be discovered to have accepted any such payments, then he must hand the sums received to his principal. In effect, the agent is unable in the course of his duties to earn more than the amount which is allowed to him under his commission agreement. Any increase in profits brings to him increase in commission, by which method he is repaid if the agency flourishes under his guidance. Where, for example, an agent receives goods for export at the agreed selling price of ios., and he is able to dispose of the articles at us., then the addition resulting from the in- creased selling price must be credited to Ms principal, irrespective of the fact that the principal would be satisfied if he received onlv the los. desired.